Bahrain-based Securities and Investment Company (Sico) has announced a net profit of BD1.127 million ($2.989 million) for the second quarter of 2011, compared to a loss of BD 627,000 for the first quarter of the year.

Net profit for the corresponding period of 2010 was BD 252,000. The bank also announced that its net profit for the first six months of 2011 was BD499,000, compared to BD1.532 million for the first half of 2010.

Sico currently has 50 per cent (or BD44.3 million) of its balance sheet in cash and deposits, compared to 43.5 per cent at the end of the fourth quarter of 2010 (BD35.4million); this reflects the cautious position the bank continues taking in regards to domestic and international capital markets, a statement said.

Available-for-sale securities amounted to BD 23.8 million as of the end of 1H11 (BD 24.4 million as of the end 2010), while Investments at fair value through the profit & loss stood at BD15.4 million (BD16.6 million at the end of 2010).

A significant amount of market exposure is in short duration investment rated bank and GCC government fixed income instruments.

Total income for the first six months of 2011 was BD499,000 (BD1.5 million) while total assets under management decreased to BD184.7 million at the end of June, compared with BD201 million at the end of December 2010.

“Sico reported a good relative performance for the first half of 2011,” said Anthony Mallis, chief executive of Securities & Investment Company.

“The firm saw a return to profitability after business started to pick up in May and June, compared with a loss during the first quarter when we saw major falls in stock and bond markets and our revenue generators witnessed substantial reduction flows. On the positive side, GCC governments continue being financially robust, with above average growth being experienced in all six economies.”

“While the rest of the year may prove challenging for the industry, Sico continues to maintain, as it has since summer 2008 a ‘fortress balance sheet’. With our firm remaining strongly capitalised, highly liquid and largely unleveraged, we continue being well positioned to take advantage of new business opportunities for when the markets eventually improve,” he added.

“That being said, we believe that the next six months will continue seeing substantial market volatility in all asset classes, as major economies reposition themselves to tackle the major imbalances that they, until very recently, did not seriously address,” Mallis concluded. – TradeArabia News Service